A company that uses the LIFO method of inventory pricing finds at an interim reporting date that there has been a partial liquidation of the base period inventory level. The decline is considered...

A company that uses the LIFO method of inventory pricing finds at an interim reporting date that there has been a partial liquidation of the base period inventory level. The decline is considered temporary and the partial liquidation will be replaced before year-end. The amount shown as inventory at the interim reporting date should

a. Be shown at the actual level, and cost of sales for the interim reporting period should reflect the decrease in the LIFO base period inventory level.

b.
Not
give effect to the LIFO liquidation, and cost of sales for the interim reporting period should reflect the decrease in the LIFO base period inventory level.

c.
Not
give effect to the LIFO liquidation, and cost of sales for the interim reporting period should include the expected cost of replacement of the liquidated LIFO base.

d. Be shown at the actual level, and the decrease in inventory level should
not
be reflected in the cost of sales for the interim reporting period.